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The three month interest rate for the Australian dollar (A$) =U is 3.5% per year and for the United States dollar (US$) it is
The three month interest rate for the Australian dollar (A$) =U is 3.5% per year and for the United States dollar (US$) it is 0.5% per year. If the spot exchange rate is currently A$1 US$1.0400 the three month forward exchange rate, on a continuously compounded basis, should be: O US$1.0097 O US$1.0478 O US$1.0712 O US$1.0322
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